Incentive plans are designed to motivate participants to pursue what i
s valued by an organization. This article discusses how values may inf
luence the design of incentive plans and the success of their implemen
tation. In situations where the incentive plan fits participants' valu
es, the authors predict a process of manual reinforcement. When values
and incentives collide, they propose two possible yet conflicting out
comes: the ''carrot effect'' and the ''snubbed carrot effect.'' They c
onclude by addressing the implications of fit and misfit for research
and practice. (C) 1998 John Wiley & Sons, Inc.